Bank officials in 2006 said stress tests were not stressful enough

Senior AIB officials expressed concerns in 2006 that Central Bank stress tests were "not stressful enough" — two years before the collapse of the Irish banking system.

The revelation came as the former head of the ESRI, John Fitzgerald, appeared before the Oireachtas banking inquiry.

The officials, who Mr Fitzgerald believed had the backing of senior members of AIB, perhaps even from the board, turned to the ESRI for help in better assessing the bank’s risks.